The S&P 500 enters a very strong time of the year [Video]

Giles Coghlan LLB, Lth, MA Financial Source

The seasonal patterns in the world’s stock markets are well documented. One of the most famous seasonal patterns is the tendency of the S&P500 to gain over the final quarter of the year between the end of October and into year-end.

Over the last 71 years, the S&P500 has gained 55 times between October 27 and December 31. The average gain has been 3.90%. The largest gain was +15.38% and the largest loss was -12.24%. There is no guarantee that this seasonal pattern will repeat the gain this year. However, it is very helpful to notice when these strong seasonal patterns are in place.

Major Trade Risks: The main risk to this trade is a correction in stocks with many analysts still expecting a deeper correction more generally.

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Author

Giles Coghlan LLB, Lth, MA

Financial Source

Giles is the chief market analyst for Financial Source. His goal is to help you find simple, high-conviction fundamental trade opportunities. He has regular media presentations being featured in National and International Press.

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